BitMEX Exchange // Condensed Review – Pros and Cons
BitMEX (Bitcoin Mercantile Exchange), is a pure margin trading platform owned by HDR Global Trading Ltd. HDR was founded in 2014 by three experts in the crypto field – Arthur Hayes, Samuel Reed, and Ben Delo. Since its launch, Bit Mex (bitmex.com) has become one of the leading derivatives trading exchanges, competing neck and neck with world-class exchanges like Binance and Huobi.
Users are able to buy and sell cryptocurrency contracts combined with margin trading with up to 100x leverage. At BitMEX, only Bitcoin deposits and withdrawals are permitted, and so it is a great platform for traders looking to increase their BTC holdings by being successful on trades.
Alright, in this BitMEX review, let’s check out what this platform has to offer.
Register a free account at BitMEX
BitMEX Restricted Countries/Regions
Is BitMEX a safe cryptocurrency exchange?
BitMEX features bank-like security measures to ensure the highest standard of safety for the customer’s digital assets. On the user side, Two Factor Authentication (2FA) is used to provide high security. This means that users need to provide multiple verification measures such as a password and a unique mobile device code whenever they need to log in, confirm withdrawals, or change account details.
On the technical side, Bit MEX runs a first-of-its-kind multi-signature deposit and withdrawal system. This means that the user’s addresses and assets, including Bitcoin private keys, are kept offline. In the event of a full attack on the web servers, trading engine, or database, there would not be enough keys available for an attacker to steal any meaningful funds.
Up until now, there have been 0 hacks and 0 intrusions into any BitMEX systems, showing that BitMEX is truly world-class regarding security.
Available Cryptocurrencies at BitMEX
Cryptocurrencies available for trading at Bit MEX are the following:
Bitcoin (XBT), Cardano (ADA), Bitcoin Cash (BCH), Ethereum (ETH), Dogecoin (DOGE), Polkadot (DOT), Chainklink (LINK), Uniswap (UNI), Litecoin (LTC), EOS Token (EOS), Ripple (XRP), Tron (TRX), Stellar (XLM)
BitMEX Services
As a user, your goal is to use the available products offered by an exchange in order to make profits. So let’s discover what services are available at BitMEX.
BitMEX Cryptocurrency Exchange
BitMEX is not a traditional exchange where you can purchase and hold cryptocurrencies such as Bitcoin, Ethereum, or Litecoin. Instead, you are allowed to deposit Bitcoin into your BitMEX wallet to begin trading futures or perpetual contracts. BitMEX offers leveraged trading products for Bitcoin, Ethereum, Cardano, Tron, Ripple, Litecoin, EOS, and Bitcoin Cash.
BitMEX Cryptocurrency Futures Trading
A traditional futures contract represents an agreement to buy or sell a currency or other instrument, at a predetermined price, and at a specified time in the future. At BitMEX, up to 100x leverage is available to traders of Bitcoin, up to 50x for Ethereum, and up to 33.3x for Litecoin. There is also a wide selection of altcoins.
With futures trading, if you have a leverage of 100x, then you will need to put up a margin of 1% of the initial amount of the trade. For example, if the amount on a Bitcoin contract is $10,000, you will have to put in $100 as your initial funds. As you can see, using only $100 can help you achieve up to $10,000 in profits. That is the power of leverage.
BitMEX Cryptocurrency Perpetual Trading
A Perpetual Contract is a similar derivative to a traditional Futures contract, with the difference being that there is no expiry like traditional Futures contracts. Perpetual contracts mimic a margin-based spot market and hence trade close to the underlying Index Price. At Bit MEX Exchange, this type of contract is available only for BTC.
BitMEX Upside Profit Contracts
Similar to options trading, this is a Bitcoin-only contract that lets buyers participate in the potential upside (positive result) of the underlying instrument.
BitMEX Downside Profit Contracts
This is another BTC-only contract where buyers of the contract can participate in the potential downside (negative result) of the underlying instrument.
BitMEX Wallet
The BitMEX wallet is a good choice, especially for those who wish to use the BitMEX trading platform. The multi-signature and two-factor authentication (2FA) security measures have ensured that BitMEX operates a very secure wallet. For coin security, BitMEX wallet implements time restrictions on withdrawals. Overall, it is a very excellent wallet to use for both investors and traders.
BitMEX Mobile App – iOS & Android
The mobile apps allow users to manage all important account features and provides access to BitMEX’s full range of innovative financial products. It is available to download via the Google Play store (for Android devices) and the App Store (for iOS devices) in over 140 countries worldwide.
BitMEX KYC Verification Requirements
BitMEX Insurance Fund
BitMEX created this fund to give traders more certainty that they will receive their money after a successful trade. BitMEX Exchange does this by ensuring that liquidation orders related to leveraged positions are always fulfilled.
The fund has experienced a 50.7% increase in its holdings in this insurance fund since the beginning of 2019. According to media reports, it has increased to holdings to over 31,300 Bitcoin (or approximately $314 million USD). Rest assured that you, as a valued trader, will have insurance on your valuable cryptos.
BitMEX Trading Fees and Limits
BitMEX Exchange works on a maker & taker model so the trading fees are dependent on the type of order (e.g. futures or contracts) and the cryptocurrency coin. Users who place a traditional futures BTC order will earn a small compensation (0.025%), and BitMEX will charge the taker 0.075%. There are no limits on the amount of trading allowed.
BitMEX Payment Methods and Fees
BitMEX does not accept deposits via fiat currency (EUR, USD, JPY, etc). It is a cryptocurrency trading platform only. This means that new traders will need to first purchase Bitcoin from elsewhere (Huobi, KuCoin, StormGain are recommended) and deposit BTC into their BitMEX account to begin trading.
Depositing at BitMEX and Fees
BitMEX charges absolutely 0% fees for any deposit. You have all the freedom to transfer your Bitcoins from another exchange to Bit MEX so that you can begin derivatives trading.
Withdrawing from BitMEX and Fees
Similar to deposits, there are 0% withdrawal fees charged by BitMEX. However, there will be a small Bitcoin network fee (0.0005 BTC) charged for withdrawals that is determined by the blockchain, not by BitMEX. This 0.0005 Bitcoin fee is standard across many other major exchanges.
BitMEX Customer Service
BitMEX customer support is reachable through email via the contact form within the website. Just click on the “?” icon and easily submit your questions to BitMEX. Their multilingual customer support is available for English, Chinese, Russian, Korean, and Japanese. Rest assured that you will receive world-class customer service at Bit MEX Exchange.
Conclusion – Should I use BitMEX?
As you can see, if you are looking to put your Bitcoins into good use and you have experience trading, then you definitely need to consider using BitMEX for up to 100x leverage. As well, BitMEX has an abundance of educational materials on the website to help you succeed at trading. Do not hesitate to create a free account to test the BitMEX trading platform.
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